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Following South Asian revenue growth, Foxconn will invest $1.54 billion in India, the latest expansion plan.
Foxconn said in a stock exchange filing that the investment will meet “operational needs.” The investment comes two months after the Taiwanese company announced it would double its Indian workforce and investment by next year.
As many tech giants move part of their manufacturing base to India in a move analysts call “China+1,” Foxconn assembles devices for Apple and others.
Foxconn, the world’s largest EMS provider, invested in China from 2001 to 2017, but the US-China trade war has slowed it since 2018.
The company, which has three manufacturing campuses in India, left a $19.5 billion chipmaking joint venture with Vedanta earlier this year but remains “confident” in India’s ambitions.
Building fabs from scratch in a new country is difficult, but Foxconn will invest in India. We have tackled similar problems since the 1980s. Foxconn, also known as Hon Hai, said at the time that it would continue to strongly support the government’s ‘Make in India’ ambitions and establish a diversity of local partnerships that meet stakeholders’ needs.
The company announced $600 million in two Karnataka chip-equipment and iPhone casing projects in August.
According to a recent report by Goldman Sachs, India’s revenue contribution increased to 3.3% in 9M23 from ~2% in 2021-22A, with revenues rising to NT$62bn (+53% YoY) from a low base.
The rising contribution reflects global-tier clients’ needs for a diversified production base, and Hon Hai’s global footprints strengthen its EMS market leadership.
